RDC backs call for GSIS to ask Union Bank to open more branches

The Regional Development Council in Central Visayas has supported the call of RDC in Caraga Region for Government Service Insurance System to negotiate with the Union Bank to open more branches in strategic areas.

This is to prevent GSIS or Union Bank from absorbing the service charges on GSIS E-Card transactions made by its members through other banks in areas without any Union Bank branch or automated teller machine.

All loans, claims and other GSIS proceeds are released through the E-Card, which functions among others as an ATM account. The pension fund awarded the E-Card servicing to the Union Bank, which has limited number of branches and ATMs in some areas in the country.

There are only 11 Union Bank branches in Central Visayas and 10 of them are located in Metro Cebu. The other one is found in Tagbilaran City.

There is no Union Bank branch in Oriental Negros and Siquijor, and the bank's ATMs are available only in Metro Cebu.

In areas without a Union Bank ATM, GSIS members are compelled to make transactions through ATMs of other banks affiliated with the same electronic banking network as the Union Bank.

In the process, they are charged a service fee for every transaction, which is deducted from their account.

The RDC noted that the service charge is seen as unfair since the same service is available for free in areas covered by the Union Bank.

The Development Administration Committee of the RDC endorsed the proposal, which is seen to benefit millions of GSIS members in the country. - Gregg M. Rubio